SUMMARY

  • The unemployment rate in Germany came in at 5.9%, in line with market expectations. Separately, the JOLT survey of job openings in the United States came in at 8.059 million, versus 8.370 million, below estimates.
  • In the UK, the composite PMI is expected to come in at 52.8 and the services PMI at 52.9, both in the economic expansion zone, which is favorable for the upcoming UK GDP reading.
  • Traders anticipate a rate cut by the Bank of Canada, which would begin to put pressure on the Fed. Currently, the index is up +0.30% and trades at 18,756 points.

 

Main events:

  • PMI Services in Spain
  • PMI Services France
  • Eurozone Services PMI
  • UK Services PMI
  • ADP Non-Farm Employment Change in the U.S.
  • US Services PMI
  • Bank of Canada interest rate decision
  • U.S. non-manufacturing PMI
  • EIA crude oil inventories

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2331.12
  • Support 2: 2328.76
  • Resistance 1: 2334.70
  • Resistance 2: 2335.92

Fundamental Analysis

  • The unemployment rate in Germany came in at 5.9%, in line with market expectations. Separately, the JOLT survey of U.S. job openings came in at 8.059 million, versus 8.370 million expected, below estimates. The Japanese services PMI came in at 53.8, above the 53.6 expected. The gold price is currently up 0.43% at USD 2.336 per troy ounce.
  • The services PMI, the strongest in the euro zone, is expected to come in at 53.3, i.e. in the zone of economic expansion. In the United Kingdom, it is also expected to be in the expansion zone, at 52.9.
  • In the U.S., ADP nonfarm payrolls is expected to increase to 173,000. The U.S. services PMI is expected to come in at 54.8.
  • The most important data of the day is the Bank of Canada’s decision on its interest rate, which is expected to be cut by 25 basis points to 4.75%. In this scenario, the Fed will start to feel some pressure.

GBPJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$637
  • Example: 100 pips change in GBPJPY price = USD1,000 potential PL.
  • Support 1: 198.41
  • Support 2: 198.25
  • Resistance 1: 198.76
  • Resistance 2: 198.95

Fundamental Analysis

  • In the UK, the composite PMI is expected to come in at 52.8 and the services PMI at 52.9, both in the economic expansion zone, which is favorable for the next UK GDP reading. In Japan, we will hear from BoJ Board Member Nakamura, who could explain the currency correction, as well as rumors of BoJ intervention in the FX market.
  • The currency corrected yesterday with a -1.11% drop, which has no clear technical explanation, but a fundamental one, due to the BoJ’s intervention in the market. The bank is not interested in the currency price reaching and surpassing the 201 resistance level.
  • Despite the drop, open buying interest continued to increase as the price reached the 198 support, which is an attractive entry level for buyers.
  • The price is below the 200-day moving average. The RSI is neutral, while the moving averages are oriented to buy.

NASDAQ 100

Specifications

  • Leverage: 200
  • Units: 1
  • Margin requirement: USD$93
  • Example: movement of 100 points= $1,000 potential PL.
  • Support 1: 18751.09
  • Support 2: 18744.17
  • Resistance 1: 18764.09
  • Resistance 2: 18770.17

Fundamental Analysis

  • Traders expect an interest rate cut by the Bank of Canada, which would start to put pressure on the Fed. The index is currently up +0.30% and trades at 18,756 points.
  • The main upward movements in the index were seen in T-Mobile +2.79%, Electronic Arts +2.64% and Honeywell +2.36%. The main decliners were Sirus XM -6.50%, MercadoLibre -3.69% and Marvell -2.68%.
  • Hedge funds BlackRock and Citadel are betting on Texas to create the Texas Stock Exchange, which would compete with the New York Stock Exchange.
  • The Nasdaq 100 crossed the 200-day moving average line, entering a resistance zone. The weekly target for the bulls is 19,000 points. The RSI and moving averages indicate buying.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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